Goldman Sachs Cuts Kospi 12-Month Target by 25% Amid AI Trade Concerns

Source Summary

Goldman Sachs strategists have reduced their 12-month price target for South Korea's Kospi Index by 25%, reversing multiple upward revisions made earlier in the year. The cut reflects intensifying concerns about the sustainability of the artificial intelligence trade that had previously driven market optimism.

Why it matters

A major investment bank's significant downward revision of a key emerging-market index signals deteriorating confidence in the AI-driven rally that has supported equity valuations globally.